Matchesfashion gets £60m cash injection from owner
Matchesfashion’s private equity owner Apax partners has agreed a £60 million funding package for the luxury retailer as it continues to work on its turnaround. The new funding comprises £40 million of equity and £20 million of additional debt.
A report said that the retailer has also secured covenant waivers and extensions with its lenders.
The company has struggled in recent years but has a turnaround plan headed by still-new CEO Nick Beighton (the former ASOS chief executive). And while the new injection of cash may have been a reflection of its problems, it's perhaps also a sign of Apax’s confidence that the plan will eventually achieve its aims.
Beighton took the helm of the business last summer and is the latest in a succession of CEOs since Apax acquired the business from its founders in 2017. In fact, he replaced Paolo De Cesare who had been at the helm for just 10 months.
The funding situation was first reported by Sky News, which said sources told it that Beighton's tenure so far has included a revival in the firm's fortunes with order demand rising 15% in the Christmas period.
A Matchesfashion spokesperson told Sky that its trading performance has been “very strong in recent months and we are well-positioned as a business, having significantly strengthened our top team. Now, with additional financial support from Apax Funds, we are well-placed to continue to drive our turnaround plan and deliver long-term commercial success”.
When Apax acquired control of Matchesfashion, the business was valued at around $1bn. But it has faced a number of operational problems since then.
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